Golden v. California Emergency Physicians Medical Group

Opinion by Judge O’SCANNLAIN; Dissent by Judge KOZINSKI.

OPINION

We must decide whether California law prohibits a settlement agreement that may constrain a physician’s freedom to practice medicine.

I

A

Donald Golden, M.D., is an emergency-room doctor formerly affiliated with the California Emergency Physicians Medical Group (together with other related defendants sued in this action, collectively, “CEP”), a large consortium of over 1000 physicians that manages or staffs many emergency rooms, inpatient clinics, and other facilities in California and other, mostly Western states. In May 2008, Dr. Golden sued CEP in the California Superi- or Court of Alameda County, regarding the loss of his staff membership at Seton Coastside Medical Facility; he alleged various state and federal causes of action including racial discrimination. CEP removed the suit to federal court in January 2010 based on original subject-matter jurisdiction under 28 U.S.C. § 1331 .

Prior to the scheduled trial date, the parties orally had agreed in open court to settle the case. In return for a substantial monetary amount, Dr. Golden consented to relinquish his current suit, to forego all *1085 other…

dissenting:

Dr. Golden and California Emergency Physicians (CEP) have a serious disagreement and they have agreed to resolve it by parting ways. Dr. Golden is paid a large sum of money and, in exchange, he gives up his right to continue working for CEP. The provision barring Dr. Golden from current employment by CEP cannot possibly violate California Business and Professions Code § 16600 because the continuation of their employment relationship is the very subject in controversy in this lawsuit, and one possible outcome would be that he would lose his job and get nothing in exchange. If this violates section 16600, few employment disputes could ever be settled.

The only way section 16600 might be implicated is if, at some future time, Dr. Golden were working for an entity that is acquired by CEP, in which case the agreement would give the employer a right to fire him without a further showing of cause. We have no way of knowing whether this part of the settlement agreement will ever come into play, as its enforcement depends on numerous circumstances that are not capable of determination at this time: where Dr. Golden will choose to live and work; where he will find employment;…

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

DONALD GOLDEN, No. 12-16514 Plaintiff-Appellant, D.C. No. v. 3:10-cv-00437-

JSW

CALIFORNIA EMERGENCY

PHYSICIANS MEDICAL GROUP; MED

AMERICA; MARK ALDERDICE; OPINION

ROBERT BUSCHO,

Defendants-Appellees.

Appeal from the United States District Court for the Northern District of California Jeffrey S. White, District Judge, Presiding

Argued and Submitted February 14, 2014—San Francisco, California

Filed April 8, 2015

Before: Alex Kozinski, Diarmuid F. O’Scannlain, and Mary H. Murguia, Circuit Judges.

Opinion by Judge O’Scannlain; Dissent by Judge Kozinski SUMMARY*

Settlement

The panel reversed the district court’s order that a settlement agreement be enforced in an employment discrimination action filed by a physician.

The agreement included a provision that the physician waive his rights to employment with the defendant or at any facility that the defendant may own or with which it may contract in the future.

The panel held that the parties’ private party contract dispute regarding whether the no-employment…